Facilities management (FM) and technical services firms are built on systems, schedules, and service delivery — but they run on trust.
Whether you’re managing HVAC systems, multi-site maintenance, security, cleaning, or essential technical infrastructure, the business is often reliant on relationships — not just contracts.
In Australia, New Zealand and Canada, most mid-sized FM firms are still founder-led.
Many have grown from a handful of staff to 50+ employees, servicing government, education, health, or commercial portfolios.
And yet, most lack a structured succession plan — despite recurring revenue and stable EBITDA.
Founders often ask:
- “What happens to the contracts if I leave?”
- “Will the team stay if I sell?”
- “Who can step up from within — and how do I make that happen?”
That’s where employee-led buyouts (ELBOs) or management buyouts (MBOs) offer a strategic, low-disruption path forward.
Why FM Succession Is Urgent — But Under-Planned
The FM sector is facing a convergence of pressures:
Ageing Founders
Many FM businesses were started in the 90s or 2000s. Founders are now in their late 50s or 60s — and still leading operations day-to-day.
Contract Risk
Clients often include government departments, councils or large corporates — all of whom value continuity. A poorly communicated sale can destabilise client confidence.
Workforce Dependence
Long-tenured staff carry critical on-site knowledge, certifications and SOPs. Sudden changes in leadership or culture can trigger staff turnover — and put service levels at risk.
Complexity of Exit
Selling to a larger FM group may yield a decent multiple — but can lead to cost-cutting, offshoring, or cultural dilution.
For founders who care about clients, contracts, and continuity — internal succession is not just viable. It’s smart.
Why ELBOs Work in FM & Technical Services
Employee- or management-led buyouts are particularly well-suited to FM firms because of the business model:
1. Recurring Revenue
FM firms typically run on long-term service contracts, making cash flow predictable — and ideal for vendor-financed buyouts.
2. Deep Operational Talent
Your area supervisors, service managers, or operations leads already run day-to-day delivery. With coaching, they can step into ownership.
3. Client Relationships Are Local
Clients know and trust the team — not the logo. An ELBO preserves the team behind the relationship.
4. Asset-Light, System-Heavy
FM firms often run lean capex models, with robust systems for scheduling, compliance, and performance tracking — which means less transition risk than plant-heavy sectors.
What Is an ELBO — and How Does It Work?
An Employee-Led Buyout (ELBO) allows internal leaders — typically operations managers, general managers or area leads — to buy into the business over time.
💡 It’s not about staff writing big cheques. It’s about creating a structure where ownership transfers gradually through:
- Vendor finance — the founder is paid over time, funded by the business
- Profit-linked buy-ins — enabling key leaders to earn equity over time
- Trusts or employee share schemes — for wider team participation
- Coaching and governance — to ensure the new owners lead with confidence
Real Case Snapshot (Anonymised – Australia)
Business: Commercial FM firm servicing government and education contracts across two states
Size: 70 staff, 50+ contracts, $12M revenue
Challenge: Founder (early 60s) had all contracts in their name. No family successor. Concerned about losing clients or staff if they exited suddenly.
Solution:
- 65% of equity sold to the GM and Ops Manager via vendor finance
- New governance structure introduced, including board oversight
- Founder retained 35% for 2 years, then exited fully
- Client transition plan implemented over 12 months
Outcome:
- No client loss during transition
- Staff retention above 90%
- Business grew 8% in year two under new leadership
Source: Blue Harbour Capital engagement (anonymised)
Why Founders Like You Choose ELBOs in FM
“I care about the people and clients we serve.”
Selling to outsiders risks change that undermines both.
“My team could run this business — they just need structure.”
We help turn capability into ownership.
“I still want to be paid — but fairly and gradually is fine.”
ELBOs protect value while reducing risk.
“I want to step back, not disappear.”
An ELBO allows phased involvement — and a graceful exit.
How Blue Harbour Capital Helps FM Firms Transition
We work with FM founders to:
- Structure ELBOs or MBOs tailored to your contracts and cash flow
- Design vendor finance and employee ownership models
- Coach your leadership team into confident owner-managers
- Build 100-day transition plans and KPI dashboards
- Support board creation and governance for post-deal stability
We’re not investors.
We don’t take equity.
We help you exit — with continuity and confidence.
Five Steps to Start Your FM Succession Plan
- Clarify your personal goals
- Do you want to retain involvement or fully exit?
- Identify your internal leadership talent
- Who’s already running the show?
- Get a realistic business valuation
- Based on contracts, risk, margin and client relationships
- Explore deal structuring options
- Vendor finance, hybrid capital, share trusts, earnouts
- Build your transition roadmap
- Client messaging, staff alignment, governance rhythm
Let’s Talk Succession in FM
Whether you’re managing buildings, systems, sites or people — your business runs on relationships, reputation and readiness.
Now it’s time to plan what happens when you’re ready to step back.
Get in touch with Blue Harbour Capital for a confidential succession strategy session.
We help FM founders protect their team, transition with trust, and exit with peace of mind.